Credit card dilemma - confused.

likelyfran

Hi all,

I have a current debt of about £1000 on my Capital One credit card.

I also have an acknowledge compulsive spending problem so have disconnected my card from Paypal, Amazon etc. and my husband has 'stashed' the card hidden away from me so I physically cannot use it. (We want to keep a c/card for booking hols etc. as you seem to need one for most bookings).

I now need to pay off my debt and am looking at the option of 0% balance transfers (which I've done before years ago).

I'm a bit confused about a couple of things.

1) If I apply, say, to Barclaycard, to transfer, and they reject my application, will having applied and been rejected affect my credit rating? If that happened and I tried other card companies and the same happened would my credit rating be going progressively 'down the Swannee'? Thing I'm concerned about re. possible rejection is that I have not been working for a few years due to ill health and am on incapacity benefit, ie. no job, low income. Or do banks not ask for employment details? I know they ask for amount of income, having looked at Barclaycard today, and it did cross my mind to stick in £16,000 or something to avoid rejection. If I did this, would they find out that wasn't true by checking?

- I'm not trying to 'defraud the system' or something, I'm expecting some moral lectures on the above, but I'm quite a moral person, in this case, it would make no difference what my income was (to the new c/card company), as I would be paying off the total debt within a year and that is that.

2) My other confusion is that, previously, I had a credit card that I used to use and then I stopped using it for about a year - probably as I was on a good salary so had plenty of wages to throw around - and consequently got a letter saying they were closing my account due to lack of activity! I think it was MBNA or Halifax, can't remember. I wanted to keep a c/card so rung them up and said I would start using it but they were really humpy and flatly refused to not close the account! I'd never missed any payments or anything to them previously.

- so... the confusion is that, having read a bit of Martin's advice on here, he seems to be saying get a card to transfer to pay off your debts but don't use it, unless I've got that wrong. However, won't they do the same as above and just close the account on you after a while if you're not actually making any money for them?

Hope this makes sense, and would be very grateful for any simple, boiled down, practical advice on this.

My husband has paid off my card for me on 2 previous occasions and has reached the end of his tether with me. There is a chance he would pay it off for me again (having said he wouldn't), but I'm trying to avoid biting into his 'meagre savings' as he calls them. (although I would be paying him back month by month as best I can being so very bad with money). He works full time but is on a low wage.

Thanks in advance for any advice from all you experts.

Tixy

If you are unemployed and only have benefit income then your chance of a new 0% card is almost zero.

Never worth commiting fraud on a credit application, and lying about your income is fraud. Its quite possible that it would cause a fraud marker on the CIFAS database (which compares application data to past applications you've made for credit anywhere).

Regarding q2 - if you have a debt on a card that you've transferred on then its very unlikely the card company will close the account whilst there is still a balance, they might consider closing it once the balance is cleared. If you have a balance then the account is not inactive.

likelyfran

Thanks Tixy, that makes things a bit clearer.

Putting an untrue income might be termed as fraud but I just don't see it as making any practical difference or doing anyone out of money, that's why I even considered it. I feared application rejection and effect on rating as on benefits, hence my second reason for considering. So I assume they can tell if it's not true then.

Love your avvie by the way.

agrinnall

If you need a card for holidays etc. why can't your husband get one in his name only so that you are unable to use it? Does he qualify for a 0% card that he could take out, do a BT from your card and then you make the repayments until it's paid off? I certainly don't think lying about your income to get one is a good idea, you may not think it's a problem now but I doubt if you'll think that if you're accused of fraud months or years down the line.

Tixy

I'd say its never worth the risk. They may well find out its not true - or suspect its not (from CIFAS) and ask for proof. Even if they don't find out at the start, if a person is on benefits they are statistically I guess more likely to default on payments. And if you default on the agreement or are unable to keep up with repayments and they later found out your application was fraudulent they are less likely to be understanding or lenient with regards to a repayment plan.

Whilst you don't see it as doing anyone out of any money from the credit card company's point of view it would be classed as obtaining money by deception.

In terms of existing card - if they try to increase the APR I would opt out of the increase and close the account (if in the future you need to book holidays then could OH do it on his card, or apply for one if he doesn't have one or use a prepaid credit card)

Thanks - i originally had just a picture of paddington but someone made me the moving one.

bengal-stripe

likelyfran wrote: »

.......I would be paying off the total debt within a year and that is that.

Isn't that wishful thinking? After all, you are making excuses already.

likelyfran wrote: »

I also have an acknowledge compulsive spending problem......... being so very bad with money.

You are considering committing fraud, just to get your next fix. If all goes belly-up (and it will) you have always hubby to fall back on.

likelyfran wrote: »

My husband has paid off my card for me on 2 previous occasions.......There is a chance he would pay it off for me again......

likelyfran

agrinnall wrote: »

If you need a card for holidays etc. why can't your husband get one in his name only so that you are unable to use it? Does he qualify for a 0% card that he could take out, do a BT from your card and then you make the repayments until it's paid off? I certainly don't think lying about your income to get one is a good idea, you may not think it's a problem now but I doubt if you'll think that if you're accused of fraud months or years down the line.

Ah, good question but my hubby refuses to have one! He lives by the 'live within your means' saying. He is very good with money.
Lying about my income would be an OK idea in my mind, as long as I didn't get found out - no-one would lose! In my view it would be a kind of white lie.
Having said that, I won't do it as I'm actually not the sort of person who tells any kind of lie easily. :A
Amazing how the law is set up to come down hard on 'money crimes' isn't it, when there are so many other kinds where the criminals near enough get away scot-free? But that's another few hundred threads..........

likelyfran

Tixy wrote: »

I'd say its never worth the risk. They may well find out its not true - or suspect its not (from CIFAS) and ask for proof. Even if they don't find out at the start, if a person is on benefits they are statistically I guess more likely to default on payments. And if you default on the agreement or are unable to keep up with repayments and they later found out your application was fraudulent they are less likely to be understanding or lenient with regards to a repayment plan.

Whilst you don't see it as doing anyone out of any money from the credit card company's point of view it would be classed as obtaining money by deception.

In terms of existing card - if they try to increase the APR I would opt out of the increase and close the account (if in the future you need to book holidays then could OH do it on his card, or apply for one if he doesn't have one or use a prepaid credit card)

Thanks - i originally had just a picture of paddington but someone made me the moving one.

Thanks Tixy. I'm a bit clueless - could I really still close the account with debt still on it? |I thought I would have to pay it off 1st which I know I will do, having had c/card debts several times and got them down to zero before (much much easier when working and getting decent salary).
That is the problem, husband won't touch credit cards but wants mine around - I actually got the scissors out a couple of days ago and told him I wanted to cut it up in front of him. Thought he would be overjoyed but he actually stopped me and it turned out he wanted it there for his holiday bookings! (He travels alone occasionally).

likelyfran

You're not being very helpful b-s.

bengal-stripe wrote: »

Isn't that wishful thinking? After all, you are making excuses already.

Excuses, what excuses? What are you talking about?

You are considering committing fraud, just to get your next fix. If all goes belly-up (and it will) you have always hubby to fall back on.

Oh give it a rest Righteous Mary, there's always one or two like you on here waiting to sink the boot in, it's so predictable. I was considering putting a higher income than I get on the form to not be rejected by c/card company and spoil my credit rating, in the pursuit of being debt-free!!!

And no, I don't really always have hubby to fall back on. You don't know anything about us, or obviously haven't read the little info I have provided.
I at least admit that I have been taking him somewhat for granted up til now, and it's all part of problems that I have that I acknowledge but I realise now that that has to stop, he cannot fund me like that continuously as he's not 'minted' himself. Plus he is well pee-d off with me now regarding it all and it's forcing me to see the light.

Saints2011

As Tixy has already said it's not a "little white lie" it's a serious offence.

Gromitt

likelyfran wrote: »

I was considering putting a higher income than I get on the form to not be rejected by c/card company and spoil my credit rating, in the pursuit of being debt-free!!!

You may wish to investigate companies that banks and credit providers use, such as National Hunter: http://www.nhunter.co.uk/

[FONT=Arial, Helvetica, Geneva, Swiss, SunSans-Regular]What is Application Fraud?

[/FONT][FONT=Arial, Helvetica, Geneva, Swiss, SunSans-Regular]Application[/FONT][FONT=Arial, Helvetica, Geneva, Swiss, SunSans-Regular]fraud is when an individual or group of individuals apply for financial services and knowingly misrepresents facts within their application. Some examples are given below:

[/FONT][FONT=Arial, Helvetica, Geneva, Swiss, SunSans-Regular]An[/FONT][FONT=Arial, Helvetica, Geneva, Swiss, SunSans-Regular]applicant inflates their annual income to facilitate access to additional borrowing.

[/FONT]